PART 1

CONNECTING
PLANS TO THE
BUDGET
 A. What is a BARANGAY
DEVELOPMENT PLAN?
A development plan for the barangay is a
desired end-state scenario of the well-being
of people and its environment to be
attained in the long-term (six or ten years)
and to be planned and implemented in
orderly sequence or priority by officials of
the barangay considering fund limitations.
IT IS A DELIBERATE
ATTEMPT TO CHANGE THE
FUTURE STATUS OR QUALITY
OF LIFE OF BARANGAY
RESIDENTS, BY RESPONDING
TO THEIR ECONOMIC,
SOCIAL AND PHYSICAL
ENVIRONMENT NEEDS
WITHIN THE LIMITS OF
AVAILABLE SCARCE
RESOURCES.
A DEVELOPMENT PLAN IS COMPOSED
OF THE FOLLOWING:

· A VISION STATEMENT OR PRACTICAL

VISION
· STRATEGIC DIRECTIONS
· BARANGAY DEVELOPMENT
(PROGRAMS, PROJECTS AND
ACTIVITIES) INVESTMENT PROGRAM
· PRIORITIES
THE TIMELINE FOR EACH COMPONENT OF THE BARANGAY
DEVELOPMENT PLAN ARE AS FOLLOWS:

A. PRACTICAL VISION
STRATEGIC DIRECTIONS 6 TO 10 YEARS

B. BARANGAY DEVELOPMENT
INVESTMENT PROGRAM 3 TO 5 YEARS
(PROGRAMS/PROJECTS/
ACTIVITIES)

C. PRIORITIES 1 YEAR
 REALITY CHECK

1
YEAR PLAN-BUDGET
EXECUTION Formulation of a
MONITORING PRACTICAL
and VISION
EVALUATION

PLANNING 6-10
CYCLE FIRM UP
YEARS

PRIORITIZE and STRATEGIC

Prepare AIP DIRECTIONS

1 YEAR
INVESTMENT
PROGRAMMING
ACTIVITIES/
PROJECTS

3-5 YEARS
ACTUAL PLANNING IS DONE IN A TWO-
DAY WORKSHOP TO BE PARTICIPATED IN
BY MEMBERS OF THE BARANGAY
DEVELOPMENT COUNCIL (BDC), PUROK
PRESIDENTS, REPRESENTATIVES OF
PRIVATE ORGANIZATIONS/
COOPERATIVES AND OTHER KEY
INFORMANTS LIKE DOCTORS, TEACHERS,
RETIRED PROFESSIONALS RESIDING IN
THE BARANGAY.
MEMBERSHIP IN THE BDC IS EXPANDED TO GET A BROAD
CONSENSUS IN THE DECISIONS TO BE INTEGRATED IN THE
PLAN. THIS IS THE SPIRIT OF PARTICIPATORY GOVERNANCE.
BARANGAY PLANNING HAS
THE FOLLOWING MAJOR
CHARACTERISTICS:
NEEDS AND REQUIREMENTS FOR PUBLIC GOODS
AND SERVICES ARE BASED ON POPULAR
DEMAND, COMMON GOOD AND GENERAL
WELFARE OF BARANGAY RESIDENTS.

DEMAND-DRIVEN
O
TUMUTUGON SA
PANGANGAILANGAN
NG MAMAMAYAN!
ALL BASIC INFORMATION ON THE PROGRAM,
ACTIVITIES AND PROJECTS INCLUDING SOURCE
OF INCOME AND WHERE THE INCOME IS SPENT
ARE OPEN TO THE PUBLIC FOR SCRUTINY.

TRANSPARENCY
O
BUKAS AT PINAPA-
ALAM SA TAONG-
BAYAN ANG KABAN
NG BARANGAY
AT SAAN ITO
GINASTOS!
Finding solutions to barangay development issues
and problems needs a serious study that is
supported with a strong passion, firm dedication,
deep love and a steadfast perseverance to
accomplish a tangible output. This is planning not
only of the mind but also of the heart.
CREATIVITY
O
ANG SUSI SA PAGLUTAS SA
SULIRANIN NG
BAYAN AY TIYAGA,
PAGMAMAHAL AT PAGPA-PLANO
NA
MAY MALINIS
NA PUSO!
 THE PLANNING WORKSHOP –
HOW PLANNING IS DONE AT THE
BARANGAY
 REALITY CHECK OR DIALOGUE
Note: This dialogue may need 2 to 3 hours of discussion.

STEP 1. KNOW YOUR BARANGAY

DRAW INFORMATION ON CURRENT

SOCIAL, ECONOMIC, GEOPHYSICAL
AND DEMOGRAPHIC CONDITIONS ALAMIN AT
OF THE BARANGAY. (PRESENT MAKIALAM
SA BARANGAY
MAPS, GRAPHS AND CHARTS TO NATIN!
FACILITATE APPRECIATION OF
CURRENT REALITY.)
IDENTIFY GAPS
AND NEEDS

ANO ANG KULANG

AT ANO ANG MGA
PANGANGAILANGAN STEP 2.
NG BARANGAY
NATIN!
IDENTIFY GAPS OR NEEDS
THAT MUST BE ADDRESSED.
 KNOW YOUR STRENGTHS and WEAKNESSES

STEP 3.
IDENTIFY THE STRENGTHS
AND WEAKNESSES OF THE
BARANGAY.

ALAMIN KUNG
SAAN TAYO
MALAKAS AT
SAAN TAYO
MAHINA!
 KNOW WHY
DEVELOPMENT
IS TURTLE-PACED
IN OUR BARANGAY
STEP 4.
IDENTIFY AT LEAST 5
ALAMIN KUNG BAKIT
MAJOR ISSUES/ PROBLEMS
MABAGAL ANG PAG- THAT SLOW DOWN
UNLAD NG ATING
BARANGAY! DEVELOPMENT.
 FORMULATE A PRACTICAL VISION

FOCUS QUESTION:
WHAT CHANGES NEED TO HAPPEN IN
BARANGAY XYZ IN THE COMING 6-10 YEARS?

MGA ANONG PAGBABAGO ANG GUSTO NATING

MAKITA SA BARANGAY SA LOOB NG 10 TAON?

Note: A focus question shall be asked that will lead

to the generation of ideas in formulating a practical
vision. This workshop will need at least 2 hours.
STEP 1.
USE IDEA CARDS TO
ANSWER FOCUS QUESTION.
(FACILITATOR EXPLAINS
FOCUS QUESTION AND THE
MEANING OF PRACTICAL
VISION.)

ISULAT ANG SAGOT

SA PUNONG TANONG
SA PAMAMAGITAN NG “IDEA CARDS”.
BRAINSTORM STEP 2.
O
PAG-USAPAN BRAINSTORM ON INDIVIDUAL
ANG
MUNGKAHING
ISIP AT ALAMIN
IDEAS AFTER PARTICIPANTS
ANG
KABUTIHANG ARE GROUPED INTO
IDUDULOT
NITO! FOCUSED GROUP
DISCUSSIONS.
STEP 3.
GROUP SIMILAR IDEAS INTO
A VISION PILLAR.

PAG-ISAHIN
ANG PARE-
PAREHONG
KAISIPAN!
 STEP 4
GIVE A TITLE OR NAME TO
SIMILAR IDEAS.

BIGYAN NG BAGONG
TITULO O PANGALAN
ANG PINAGBUKLOD
NA MGA KAISIPAN!
PEOPLE ARE GAINFULLY EMPLOYED
IDLE LANDS ARE PRODUCTIVE
INCREASED LOCAL REVENUE
HOUSEHOLD INCOME IS ADEQUATE

ECONOMICALLY –STABLE AND

SELF-RELIANT BARANGAY
HEALTHY AND ENERGETIC PEOPLE
WELL- INFORMED COMMUNITY
FUNCTIONALLY LITERATE RESIDENTS

CIVILIZED, HEALTHY AND WELL-

INFORMED RESIDENTS
 LOW INCIDENCE OF CRIME
WELL-LIGHTED STREETS
GOD-FEARING COMMUNITY

A PEACEFUL AND CRIME-FREE

SOCIETY
CLEAN AND GREEN COMMUNITY
PROPER DISPOSAL OF WASTES
BARANGAY PARKS WELL-
MAINTAINED

SUSTAINABLE ENVIRONMENTAL
MANAGEMENT
LIVING CONDITION ENHANCED
THROUGH INFRASTRUCTURE
SAFE, FAST AND RELIABLE MOBILITY
OF PEOPLE
LIVES AND PROPERTIES PROTECTED
AGAINST MAJOR FLOODS

INFRASTRUCTURE
DEVELOPMENT
PEOPLE WELL- INFORMED OF
CURRENT ISSUES
PEOPLE’S NEEDS ARE
PRIORITIZED
PARTICIPATIVE GOVERNANCE
OBSERVED

BARANGAY GOVERNANCE
STEP 5.
CONNECT ALL TITLES AND
FORMULATE THE VISION (GET
CONSENSUS OR VOTE OF
ACCEPTANCE ON THE NEW
VISION STATEMENT FROM THE
PARTICIPANTS.)
CONNECT ALL TITLES…
TO FORMULATE THE PRACTICAL
VISION STATEMENT

DUGTUNGIN ANG MGA TITULO NA

MAGBUBUO NG MAKATOTOHANANG
PANGARAP NG BARANGAY!
 FORMULATION OF PRACTICAL VISION
• ECONOMICALLY STABLE AND • SUSTAINABLE ENVIRONMENTAL
SELF- RELIANT BARANGAY MANAGEMENT

• CIVILIZED, HEALTHY AND • INFRASTRUCTURE DEVELOPMENT

WELL- INFORMED RESIDENTS • BARANGAY GOVERNANCE
• A PEACEFUL AND CRIME- FREE
SOCIETY

“BARANGAY POBLACION IS A WELL-DEVELOPED, PROGRESSIVE AND SELF-

RELIANT COMMUNITY, WITH HEALTHY AND WELL- INFORMED RESIDENTS
WHO ARE GOD-FEARING AND PEACE-LOVING, PARTICIPATE IN LOCAL
GOVERNANCE TO SUSTAIN ITS ENVIRONMENT.”
IDENTIFY STRATEGIC
DIRECTIONS
Focus Question:

What actions must be done

to realize the practical
vision?
Note: This workshop will need at least 2 hours.
STRATEGIC DIRECTIONS

ANO ANG
STEP 1.
KAILANGANG GAWIN
NG BARANGAY PARA ANSWER FOCUS QUESTION
MATUPAD ANG
MINIMITHING (FACILITATOR EXPLAINS FOCUS
PAGBABAGO?
QUESTION AND THE MEANING
OF STRATEGIC DIRECTIONS.)
 BRAINSTORM PAG-
ISIPAN,
ARALIN AT
PAG-USAPAN
STEP 2. KUNG ANONG
AKSIYON
ANG
BRAINSTORM ON GAGAWIN
PARA
MARATING
INDIVIDUAL IDEAS WITHIN ANG
PRACTICAL
FOCUSED GROUP VISION!

DISCUSSION.
SELECT BEST IDEAS

STEP 3.
GROUP SIMILAR IDEAS AND
SELECT AT LEAST 3 BEST
IDEAS FROM EACH GROUP.

BUUIN ANG MGA KAISIPAN

AT PILIIN ANG TATLONG
MAGAGANDANG IDEYA!
 VISION
STRATEGIC DIRECTION

ECONOMIC GROWTH • CREATE EMPLOYMENT

• PLANT IDLE LANDS TO CASH CROPS
• PROMOTE/ ATTRACT INVESTMENTS
 • EDUCATE CHILDREN OF THE
SOCIAL RESPONSIBILITY
COMMUNITY
• GIVE PRIMARY HEALTH CARE
TO RESIDENTS
• PROVIDE EASIER ACCESS TO
HEALTH SERVICES
PEACE AND ORDER • REPORT ALL CRIME INCIDENTS OR
ARISING OF CONFLICTS
• PROVIDE STREET LIGHTS IN PARKS AND
ROADS
• PROHIBIT ALL FORMS OF GAMBLING
SUSTAINABLE • MAINTAIN CLEANLINESS IN ALL AREAS
ENVIRONMENTAL DEVELOPMENT OF THE BARANGAY
• PROVIDE EFFECTIVE WASTE
MANAGEMENT PROGRAM
• REFOREST ALL KAINGIN AREAS
INFRASTRUCTURE • MAINTENANCE OF ROADS
DEVELOPMENT • REPAIR OF FLOOD CONTROL FACILITIES
• MAINTENANCE OF BRIDGES
BARANGAY GOVERNANCE • INFORM ALL BARANGAY RESIDENTS OF
DEVELOP MENT ISSUES
• CONDUCT PUBLIC HEARINGS
• ENACT ORDINANCES WHICH CATERS TO
THE PEOPLE’S NEEDS
 GET CONSENSUS ON SELECTED IDEAS
STEP 4. AND SET TIME FRAME

GET CONSENSUS ON THE

ACTION STATEMENTS OR SANG-AYUNAN
STRATEGIC DIRECTIONS TO ANG MGA
AKSIYONG
BE DONE AND DETERMINE GAGAWIN
AT I-PLANO
TIME FRAME OF KUNG KAILAN
GAGAWIN!
IMPLEMENTATION.
INVESTMENT PROGRAMMING
(3-5 YEARS)

Note: This workshop will need at least 3 hours discussion.

PAG-ARALAN ANG “STRATEGY” O

AKSIYONG GAGAWIN AT PAG-ISIPAN
KUNG PAANO ISASAGAWA!

STEP 1.
Distribute each
strategy to each
focused group
discussion.
DISTRIBUTE STRATEGY
DETERMINE WHAT PROGRAM,
ACTIVITIES AND PROJECTS STEP 2.
WILL IMPLEMENT
THE STRATEGY DETERMINE THE
PROGRAM/PROJECT/
ARALIN KUNG
ANONG PROGRAMA,
TRABAHO O
ACTIVITIES FOR EACH
PROYEKTO
ANG GAGAWIN
STRATEGY AND
PARA MAISAGAWA CORRESPONDING FUNDING OR
ANG “STRATEGY”.
INVESTMENT REQUIREMENT.
 STEP 3. PROJECT/ACTIVITY PROGRAMMING.

EXAMPLE:

Strategy No. 1, 2, 3
Program/Projects/Activities or Year 1 Year 2 Year 3
Services

Acquisition of Garbage Truck

for Garbage Collection

Maintenance of Mini Forest

Park

Establishment of a tree
Nursery
 STEP 4. CONSOLIDATE THE BDIP

EXAMPLE: BARANGAY DEVELOPMENT INVESTMENT PROGRAM (BDIP).

Programs/Activities/Projects Year Year Year Year Year TOTAL

1 2 3 4 5

A. Agricultural Program 200 200 300 300 300 1,300

B. Day Care Program 300 300 300 300 1,500

300

C. Health & Nutrition 250 250 250 250 1,250

250
Program

D. Peace & Order Program 200 200 200 200 200 1,000

E. Infrastructure Program 1,000 1,000 1,000 1,000 5,000

1,000

F. Barangay Governance
500 500 500 500 500 2,500
Program

G. Development Projects 300 300 400 400 400 1,800

TOTAL 2,750 2,750 2,950 2,950 2,950 14,350

PRIORITIZE BASIC SERVICES DELIVERY AND
DEVELOPMENT PROJECTS TO BE IMPLEMENTED
DURING THE BUDGET YEAR, INCLUDING THEIR
MFO AND PERFORMANCE INDICATORS.

Note: This may need 2 hours to finish the workshop.

Step 1. Give priority to Basic Services Delivery as

mandated by the Local Code.

Step 2. Prioritize Development Projects within the 20% of IRA.

(Use demand-driven approach in selecting what
projects to be funded under the 20%.)

Step 3. Prioritize projects to be funded from external sources.

DETERMINE THE MAJOR FINAL OUTPUT (MFO) and PERFORMANCE INDICATORS (PI)
for EACH PROGRAM/ACTIVITY/PROJECT

ALAMIN ANG MAGIGING

SERBISYO O PRODUKTONG MAIDUDULOT NG
PROGRAMA, TRABAHO AT PROYEKTO PATI
ANG KAUKULANG PAGSUSUKAT NG
TRABAHONG
GINAWA!
DETERMINE THE MAJOR FINAL OUTPUT (MFO) FOR EACH
PROGRAM/ACTIVITY/PROJECT. SEE EXAMPLE BELOW.

Program/Activity/Project Major Final Output (MFO)

A. Programs/Activities

1. Agricultural Program Agricultural Services

2. Day Care Program Day Care Services

3. Health and Nutrition Program Health Care and Nutrition Services

4. Peace and Order Program Peace and Order Services

5. Infrastructure Program Infrastructure Services

6. Administrative and Legislative Barangay Governance Services (Administrative and

Program or Barangay Governance Legislative Services)
Program

7. Others
IDENTIFY THE PERFORMANCE INDICATOR FOR EACH MFO AND
INVESTMENT REQUIREMENT. SEE EXAMPLE BELOW.

Investment/
Major Final Output (MFO) Performance Indicator Fund
Requirement

A. Programs/Activities

Agricultural Services Plant seedlings distributed.

Farmer/Fisherfolk beneficiaries. P XXX
XXX

Day Care Services Pre-school children trained. XXX

Parent beneficiaries. XXX

Health Care and Nutrition Patient provided w/ primary care. XXX

Services Children provided w/ nutrition care. XXX

XXX
Peace and Order Services Conflicts resolved./Persons
apprehended.
Infrastructure Services
XXX
Kilometers of barangay road XXX
maintained.
Barangay Governance Solar dryer constructed. XXX
Services (Administrative and
Legislative) Barangay officials trained on XXX
planning and budgeting
Barangay ordinances/resolutions
passed.
TOTAL P XXX
EXPECTED OUTPUT OF THE PLANNING WORKSHOPS

1. Practical Vision for the Barangay.

2. Strategic Direction on how to realize the

Vision.

3. A medium-term investment development

program for the barangay.

4. Priorities for the budget year including their

target output and performance indicators.
 DEPARTMENT OF BUDGET AND MANAGEMENT
and the Association of Local Budget Officers in
Central Visayas, Inc.

BUDGET PREPARATION
SEPT. 20-OCT. 16
 *
JAN_______________________________P___@______ _DEC

+++++++++++++++++++++++++
++
Legend:
P Preparation – Sept. 20-Oct. 16)
@ Authorization – Oct .16 - Dec 31

* Review – after submission budget

________ Execution – Jan 01 – Dec 31
+ Accountability – Jan 01 – Dec 31
 DEPARTMENT OF BUDGET AND MANAGEMENT

Plan

AIP

BUDGET
WHAT IS THE IMPORTANCE OF PREPARING A BARANGAY
BUDGET?
• THE BUDGET IS AN INSTRUMENT FOR BARANGAY OFFICIALS TO
EFFECTIVELY MANAGE THE DEVELOPMENT OF THE BARANGAY.

• PLANNING AND POLICY ADOPTION

• PROGRAM AND PROJECT IMPLEMENTATION
• FINANCIAL CONTROL
• MANAGEMENT INFORMATION
 A BARANGAY BUDGET CONSISTS OF THE
FOLLOWING:

1. ESTIMATES OF INCOME
2. TOTAL APPROPRIATIONS
CURRENT OPERATING EXPENDITURES
PERSONAL SERVICES
MAINT. & OTHER OPERATING EXP.
CAPITAL OUTLAY (CO)
LAND & LAND IMPROVEMENT
BUILDINGS & FACILITIES
EQUIPMENT , FURNITURE & FIXTURES
TRANSPORTATION, PUBLIC INFRA
• SUBMISSION OF DETAILED STATEMENTS OF INCOME AND EXPENDITURES. –

• ON OR BEFORE THE FIFTEENTH (15TH) DAY OF

SEPTEMBER OF EACH YEAR,

• THE BARANGAY TREASURER SHALL SUBMIT TO

THE PUNONG BARANGAY A STATEMENT
COVERING THE ESTIMATES OF INCOME AND
EXPENDITURES FOR THE ENSUING FISCAL YEAR,

• BASED ON A CERTIFIED STATEMENT ISSUED BY

THE CITY OR MUNICIPAL TREASURER COVERING
THE ESTIMATES OF INCOME FROM LOCAL
SOURCES FOR THE BARANGAY CONCERNED.
 SEC. 331, RA 7160
• UPON RECEIPT OF THE STATEMENT OF
INCOME AND EXPENDITURES FROM THE
BARANGAY TREASURER (BT),

• THE PUNONG BARANGAY (PB) SHALL

PREPARE THE BRGY. BUDGET FOR THE
ENSUING FISCAL YEAR IN THE MANNER
AND WITHIN THE PERIOD PRESCRIBED IN
THIS TITLE AND SUBMIT THE ANNUAL
BARANGAY BUDGET TO THE SB FOR
LEGISLATIVE ENACTMENT.
• WHO PREPARES THE BARANGAY BUDGET?

ANSWER:
THE PB WITH THE ASSISTANCE OF
THE BT AND IN CONSULTATION WITH THE
SB AND BARANGAY DEVELOPMENT
COUNCIL (BDC) PREPARES THE BARANGAY
BUDGET

• REFERENCE: SECTION 389 (B) (7), RA 7160

 LOCAL BUDGET
MEMORANDUM NO. 77-A
MAY , 2018

LOCAL BUDGET CALL FOR 2019 OF BARANGAYS

• COMPUTATION OF IRA:
• BASED ON THE CERTIFICATION OF THE BUREAU OF INTERNAL REVENUE ON THE
ACTUAL NATIONAL INTERNAL REVENUE TAXES COLLECTED IN FY 2016;
• SECTION 285 OF THE LOCAL GOVERNMENT CODE OF 1991 (RA NO. 7160)
• FOR SPECIAL SHARES OF BARANGAYS IN THE PROCEEDS OF NATIONAL TAXES,
COORDINATION WITH THE APPROPRIATE REVENUE COLLECTING AGENCIES AND
GOVERNMENT CORPORATIONS BE MADE TO RECONCILE THEIR RECORDS WITH
THOSE OF THE COLLECTING AGENCIES TO DETERMINE THE AMOUNT OF THEIR
SHARES FROM SUCH NATIONAL TAXES.
 PRIORITIES IN THE USE OF IRA & OTHER LOCAL
RESOURCES
• PURSUANT TO SEC. 17 (G) OF RA NO. 7160, LOCAL RESOURCES OF
BARANGAYS SHALL FIRST COVER THE COST OF PROVIDING BASIC SERVICES
AND FACILITIES ENUMERATION UNDER SEC. 17 (B) (1)

• 20% OF ITS IRA FOR DEVELOPMENT PROJECTS PER SEC. 287 OF RA 7160
(DILG-DBM JMC NO. 2017-1 DATED FEB. 22, 2017)

• 5% OF ESTIMATED REVENUES FROM REGULAR SOURCES OF LGUS FOR BRRMF.

• 10% OF THE GENERAL FUND OF THE BARANGAY SHALL BE SET ASIDE FOR
SANGGUNIANG KABATAAN (YOUTH DEVELOPMENT AND EMPOWERMENT
PUROSES)
PRIORITIES IN THE USE OF IRA & OTHER LOCAL RESOURCES
• HARMONIZE LOCAL BUDGET PLANS AND GOALS WITH THE
NATIONAL DEVELOPMENT PLANS, GOALS AND STRATEGIES, AND
THE PRIORITIES OF THEIR RESPECTIVE MOTHER
CITIES/MUNICIPALITIES/PROVINCES AS WELL AS ALIGN PPAS WITH
THE PRIORITIES OF THE NATIONAL GOVERNMENT, SPECIFICALLY
UNDER THE PHILIPPINE DEVELOPMENT PLAN AND PUBLIC
INVESTMENT PROGRAM
• ALIGN WITH THE AMBISYON NATIN 2014, THE 2013 AGENDA FOR
SUSTAINABLE DEVELOPMENT GOALS (SDGS) AND THE PRESIDENT’S
0 + 10 POINT SOCIO-ECONOMIC AGENDA
PRIORITIES IN THE USE OF IRA & OTHER LOCAL RESOURCES

• LOCAL NUTRITION PLAN IN ACCORDANCE WITH

THE PHILIPPINE PLAN OF ACTION FOR NUTRITION
2017-2022

• PROVIDE PREVENTIVE OR EDUCATIONAL

PROGRAMS AND THE REHABILITATION OF
TREATMENT OF DRUG DEPENDENTS PURSUANT TO
RA NO. 9165 (COMPREHENSIVE DANGEROUS
DRUGS ACT)
PRIORITIES IN THE USE OF IRA & OTHER LOCAL RESOURCES

• CONDUCT OF BARANGAY CLEARING

OPERATIONS, INCLUDING REHABILITATION OF
DRUG USERS IN COORDINATION WITH THE DOH
& DSWD

• ESTABLISHMENTS OF SPECIAL DRUG EDUCATION

CENTERS

• STRENGTHENING THE CRIMINAL JUSTICE SYSTEM

 Budget Operations Manual for Local Government Units, 2016 Edition

BARANGAY BUDGET PREPARATION FORMS

1. BBP 1 - Budget of Expenditures and Sources of
Financing (Annex B)

1. BBP 2 -Programmed Appropriation by PPA, Expense

Class, Object of Expenditure and expected Results
(Annex C)

3. BBP 2- A List of Projects Chargeable Against the 20%

Development Fund (Annex D)

3. BBP 3 - Plantilla of Personnel (Annex E)

4. BBP 4 – Statement of Indebtedness Annex F)

 DOCUMENTS AND FORMS TO BE SUBMITTED TO THE
SANGGUNIANG BARANGAY FOR AUTHORIZATION OF THE BARANGAY
BUDGET:
• ANNUAL BUDGET (BARANGAY EXPENDITURE PROGRAM)
• PLANTILLA OF PERSONNEL (BBP FORM NO. 3)
• STATEMENT OF INDEBTEDNESS (BBP FORM NO. 4, IF ANY
• ANNUAL INVESTMENT PROGRAM DULY APPROVED BY THE BARANGAY
SANGGUNIAN THRU A RESOLUTION, SUPPORTED BY THE FOLLOWING:
• DILG-ENDORSED GAD BUDGET
• BDRRMP REVIEWED BY THE APPROPRIATE REVIEW TEAM
• BARANGAY EXPENDITURE PROGRAM (BBPF NO. 1, 2, 2-A)
CONTINUATION

• SK BUDGET ?????
BUDGET - IS A WRITTEN STATEMENT OF MONEY; WHERE
IT IS DRAWN FROM, ITS AMOUNT, HOW IT IS SPENT.

BARANGAY BUDGET CONSISTS OF :

1. INCOME (ESTIMATES)
2. APPROPRIATIONS
3. MAJOR FINAL OUTPUTS

APPROPRIATIONS CONSIST OF
A. THE CURRENT OPERATING EXPENDITURES(COE) IS COMPOSED OF:
PERSONAL SERVICES (PS) AND
MAINTENANCE AND OTHER OPERATING EXPENSES (MOOE)

B. CAPITAL OUTLAYS – CONSIST OF EXPENDITURES WHICH FORMS

PART OF THE ASSETS OF THE MUNICIPALITY. ITS USE USUALLY LAST FOR MORE
THAN 1 YEAR.
PERSONAL SERVICES (COMMON)
1. HONORARIA
2. CASH GIFT
3. YEAR-END BONUS
4. MONETIZATION OF LEAVE CREDIT
5. PEI
SALARY GRADES FOR BARANGAY OFFICIALS/PERSONNEL:
PUNONG BARANGAY - SG 14
SB MEMBERS, BRGY. SECRETARIES & TREASURER - SG 10
DAY CARE WORKERS - SG 4
BRGY. HEALTH WORKERS,NUTRITION SCHOLARS - SG 4
ACCOUNTING CLERK I - SG 4
ADMIN. AIDE IV(BARANGAY RECORDS KEEPER) - SG 4
ADMINISTRATIVE AIDE III* (CLERK I) - SG 1
ADMINISTRATIVE AIDE I*/UTILITY WORKER I - SG 1
BARANGAY TANODS/LUPONG TAGAPAMAYAPA - SG 1
 MONETIZATION OF LEAVE CREDITS
CSC DBM JOINT CIRCULAR NO. 1, S. 2004 DATED MARCH 23, 2004

BARANGAY OFFICIALS ARE ENTITLED TO LEAVE CREDITS/BENEFITS

EQUIVALENT TO 30 DAYS FOR EVERY YEAR OF SERVICE IN THE
BARANGAY
BARANGAY OFFICIALS ENTITLED TO LEAVE PRIVILEGES:
• PUNONG BARANGAY
• SB MEMBER/BARANGAY KAGAWAD (BK)
• SK CHAIR AS EX-OFFICIO MEMBER OF THE SB
• BARANGAY SECRETARY (BS)
• BARANGAY TREASURER (BT)
BS AND BT ARE ENTITLED TO LEAVE PRIVILEGES IF:
> RENDERED SERVICE 40 HOURS/WEEK
 APPOINTMENT PAPERS SUBMITTED TO CSC FOR RECORD
PURPOSES
FORMULA FOR COMPUTATION OF THE MONETIZATION
MONTHLY HONORARIA X NO. OF LEAVE CREDITS X .0481927
PHP 4,000.00 X 28 DAYS X .0481927 = PHP 5,397.58
 PRODUCTIVITY ENHANCEMENT INCENTIVE (PEI)
LEGAL BASIS : BUDGET CIRCULAR NO. 2017-4
DATED : DECEMBER 4, 2017
9.0 GRANT OF PEI TO EMPLOYEES IN LGUS
LGU EMPLOYEES, INCLUDING THOSE IN BARANGAY GOVERNMENT WHO ARE
COMPENSATED THROUGH MONTHLY HONORARIA, MAY BE GRANTED THE ONE-TIME PEI, AT
RATES DETERMINED BY THE RESPECTIVE SANGGUNIAN, DEPENDING ON THE LGU FINANCIAL
CAPABILITY, AND SUBJECT TO THE FOLLOWING CONDITIONS:
AN LGU SHALL EXERCISE PRUDENCE IN THE USE OF LOCAL FUNDS. IN DETERMINING
THE AMOUNT OF THE PEI, THE SANGGUNIAN SHALL ENSURE THAT THE SAME IS REASONABLE
AND THAT THE EXPENDITURE WILL NOT, IN ANY WAY ADVERSELY AFFECT THE DELIVERY OF
SERVICES TO THE PUBLIC.
 Maintenance & Other Operating Expense (MOOE)

- TRAVELLING EXPENSE
- TRAINING EXPENSE
- OFFICE SUPPLIES EXPENSE
- DRUGS & MEDICINES EXPENSE
- GASOLINE, OIL AND LUBRICANTS EXPENSE
- WATER EXPENSE
- ELECTRICITY EXPENSE
- TELEPHONE EXPENSE – LANDLINE
- TELEPHONE EXPENSE – MOBILE
- INTERNET EXPENSE
- REPAIRS & MAINT. (MOTOR VEHICLE, OFFICE EQUIPMENT)
 CAPITAL OUTLAYS
1. LAND IMPROVEMENT- ELECTRIFICATION
2. OFFICE BUILDINGS
3. OFFICE EQUIPMENT
4. FURNITURE'S AND FIXTURES
5. IT EQUIPMENT AND SOFTWARE
6. LIBRARY BOOKS / MOTOR VEHICLES
7. ROADS
8. RESERVOIRS
9. WATERWAYS
10. OTHER ASSETS
 BUDGET PREPARATION ACTIVITIES

City/Municipal Barangay Treasurer

Treasurer gives an makes an estimate of
estimate of income income & expenditures
for the ensuing year (On of before Sept. 15)

Punong Barangay Barangay Chairman

submits Budget to prepares his budget for the
ensuing year with the help
the Council for
of the BDC and the Council
enactment (October 16)
 WHAT ARE ACTIVITIES FOR BARANGAY
BUDGET PREPARATION IN THE BARANGAY?
ANSWER:
1. ISSUANCE OF THE BUDGET CALL BY THE PB BASED ON:
A. APPROVED AIP FOR THE YEAR
B. SUBMITTED STATEMENT OF INCOME AND EXPENDITURES

WHAT ARE THE CONTENTS OF BUDGET CALL?

ANSWER:

THE CONTENTS OF THE BUDGET CALL ARE:

* OBJECTIVES AND POLICY DECISIONS FOR THE
BUDGET YEAR (TUMONG UG TUYO)
* SPENDING CEILING FOR BASIC SERVICES,
DEVELOPMENT PROJECTS
* EXPECTED OUTPUTS/TARGETS OF EACH BASIC
SERVICE
* BUDGET CALENDAR
 EXAMPLE OF A BUDGET CALENDAR:

ISSUANCE OF BUDGET CALL ….…… SEPT. 20

PREPARATION OF BUDGET PROPOSALS ………. SEPT. 25

BUDGET FORUM W/ BRGY. OFFICIAL … SEPT. 26

AND STAKEHOLDERS

FINALIZATION OF BRGY. EXPENDITURE ………. SEPT. 30

OR PROGRAM APPROPRIATIONS BILL

PREPARATION OF BUDGET MESSAGE … SEPT. 30

 MANDATORY OBLIGATIONS THAT SHOULD BE
PROVIDED IN THE BARANGAY ANNUAL BUDGET?
THEY ARE APPROPRIATIONS FOR:
• DEVELOPMENT FUND (20% OF ANNUAL IRA)
• SK FUND (10% OF GENERAL FUND)
• 5% FOR BARANGAY DISASTER RISK REDUCTION
AND MANAGEMENT FUND
• 20% FOR DEBT SERVICING
• BASIC SERVICES
• ADMINISTRATIVE/LEGISLATIVE SERVICES
 FREE PORTION
5% BDRRMF

10%

PS

20%
Free Resources
2.2 COMPUTE FREE RESOURCES
• IF THE TOTAL ESTIMATED INCOME FOR THE BUDGET
YEAR IS GREATER THAN EXPECTED MANDATORY
EXPENDITURES , THE EXCESS MAY BE TERMED AS FREE
RESOURCES.
• IF IT IS LESS, THEN IT IS A DEFICIT.
• COMPUTATION OF FREE RESOURCES
INCOME AVAILABLE FOR APPROPRIATION FOR THE
BUDGET YEAR ……………………………………….... P XXXX.XX
LESS: MANDATORY EXPENSES
• 20% DEVELOPMENT FUND … XXX.XX
• 10% SK FUND … XXX.XX
• 5% DRRMF … XXX.XX
• BASIC SERVICES ... XXX.XX
XXXXX
FREE RESOURCES . ………… XXX.XX
FREE RESOURCES MAY BE ALLOCATED TO
THE FF:
• HIGH PRIORITY DEVELOPMENT PROJECT (IN ADDITION TO PROJECTS
LISTED UNDER THE 20% DEVELOPMENT FUND)

• ADDITIONAL MOOE FOR BASIC SERVICES

• ADDITIONAL HONORARIA FOR BARANGAY OFFICIALS

• IF THE TOTAL PS COST FOR THE BUDGET YEAR IS LESS THAN THE PS
CAP, THEN HONORARIA MAY BE ADJUSTED SUBJECT TO
ENACTMENT OF AN APPROPRIATIONS ORDINANCE, FOLLOWING
THE GUIDELINES PRESCRIBED IN LBC NO. 63:
• UNIFORM APPLICATION – (UNIFORM PERCENTAGE
OF ADJUSTMENT
• ADJUSTED HONORARIA SHALL NOT EXCEED
• SALARY GRADE 14 –PB
• SALARY GRADE 10 – SB, BT, BS

(BASED ON THE SALARY SCHEDULE ADAPTED

BY THE MUNICIPALITY/CITY)
 ILLUSTRATIVE COMPUTATION
(UNIFORM % INCREASE IN HONORARIA)

AMOUNT AVAILABLE FOR INCREASE (FREE RESOURCES) P30,000.00

Positions Present Maximum Difference Uniform % Amount of New

Rate Salary Per of Increase Increase Salary
LBC 115 (30K/c total)
a b c= (b-a) d e= c*d e+b
Punong 22,500 26,494 3,994 73% 2,910 25,410
Barangay
Sangguni- 120,000 149,744 29,744 73% 21,672 141,672
ang
Barangay
Barangay 15,000 18,718 3,718 73% 2,709 17,709
Treasurer
Barangay 15,000 18,718 3,718 73% 2,709 17,709
Secretary
TOTAL 41,174.00 30,000.00
RA 7160, Sec. 331-Preparation of the Barangay Budget
Legal Basis
(B). THE TOTAL ANNUAL APPROPRIATIONS FOR
PERSONAL SERVICES OF A BARANGAY FOR ONE (1)
FISCAL YEAR SHALL NOT EXCEED FIFTY-FIVE PERCENT (55%) OF
THE TOTAL ANNUAL INCOME ACTUALLY REALIZED FROM
LOCAL SOURCES DURING THE NEXT PRECEDING FISCAL YEAR.
R.A 7160 SEC. 331. PREPARATION OF THE BARANGAY BUDGET.
(B). THE TOTAL ANNUAL APPROPRIATIONS FOR
PERSONAL SERVICES OF A BARANGAY FOR ONE (1)
FISCAL YEAR SHALL NOT EXCEED FIFTY-FIVE PERCENT (55%) OF
THE TOTAL ANNUAL INCOME ACTUALLY REALIZED FROM
LOCAL SOURCES DURING THE NEXT PRECEDING FISCAL YEAR.
ILLUSTRATIVE COMPUTATION OF PS CAP OR PS LIMITATION
2017 2018 2019
1,500,000 .00 1,800,000.00 2,000,000.00
X .55%
825,000.00
THE PS CAP OF THE CODE, SHALL BE
WAIVED FOR THE IMPLEMENTATION OF
THE FOLLOWING:
A. GRANT OF 5,000.00 CASH GIFT FOR
BARANGAY OFFICIALS AND (PHP 55,000.00),
11 BARANGAY OFFICIALS

B. THE YEAR-END BONUS EQUIVALENT

TO 1,000 FOR THE PUNONG BARANGAY AND
600 FOR OTHER OFFICIALS (PHP 7,000.00)
THE 20% DEVELOPMENT FUND
AND ITS USE IS GOVERNED BY
DILG DBM JOINT MEMORANDUM
CIRCULAR NO. 2017-1
DATED: FEB. 22, 2017
 USE OF 20% DEVELOPMENT FUND

• 3.1 Social Development

3.1.1 Construction or rehabilitation of health
centers, rural health units or hospitals,
and purchase of medical equipment;
3.1.2 Construction or rehabilitation of local
government-owned potable water
supply system;
3.1.3 Establishment or rehabilitation of
Manpower Development Centers;
3.1.4 Construction or rehabilitation of
evacuation centers;
 USE OF 20% DEVELOPMENT FUND
• 3.1 Social Development
3.1.5 Purchase or repair of area-wide calamity
related alarm or warning system;
3.1.6 Rehabilitation of cultural/historical sites;
3.1.7 Purchase or repair of appropriate
calamity-related rescue operations
equipment such as inflatable boats,
breathing apparatus, extraction tools,
safe line rescue ropes, fire extinguishers,
chainsaws, two (2) way handheld radios
and the like;
 USE OF 20% DEVELOPMENT FUND
• 3.1 Social Development
3.1.8 Purchase and development of land for the
relocation of informal settlers and
relocation of victims of calamities;
3.1.9 Construction or rehabilitation of facilities
such as multi-purpose hall intended to
cater out-of-school youths, women, senior
citizens, minors, displaced families,
indigenous people and differently-abled
persons; and
3.1.10 Installation and maintenance of street
lighting system except payment of electric bills.
 USE OF 20% DEVELOPMENT FUND
• 3.2 ECONOMIC DEVELOPMENT
32.1 CONSTRUCTION OR REHABILITATION OF COMMUNAL IRRIGATION
OR WATER IMPOUNDING SYSTEM AND PURCHASE OF POST HARVEST
FACILITIES SUCH AS FARM OR HAND TRACTOR WITH TRAILER,
THRESHER AND MECHANICAL DRIERS;
3.2.2 CONSTRUCTION OR REHABILITATION OF LOCAL ROADS OR
BRIDGES AND PURCHASE OF APPROPRIATE ENGINEERING
EQUIPMENT SUCH AS DUMP TRUCKS, GRADERS AND PAY
LOADERS;
 USE OF 20% DEVELOPMENT FUND
• 3.2 ECONOMIC DEVELOPMENT

3.2.3 CAPITAL EXPENDITURES RELATED TO THE

IMPLEMENTATION OF LIVELIHOOD OR ENTREPRENEURSHIP/LOCAL
ECONOMIC DEVELOPMENT PROJECTS; AND
3.2.4 AMORTIZATION OF LOANS USED TO FINANCE
DEVELOPMENT PROJECTS CITED IN THIS JOINT CIRCULAR, SUBJECT
TO THE 20% DEBT SERVICE CAP

• 3.3 ENVIRONMENTAL MANAGEMENT

3.3.1 REFORESTATION AND URBAN GREENING;

3.3.2 CONSTRUCTION OR REHABILITATION OF SANITARY
LANDFILLS, MATERIAL RECOVERY FACILITIES AND PURCHASE OF
GARBAGE TRUCKS AND RELATED EQUIPMENT;
 USE OF 20% DEVELOPMENT FUND
• 3.3 ENVIRONMENTAL MANAGEMENT
3.3.3 IMPLEMENTATION OF FLOOD AND
EROSION CONTROL PROJECTS SUCH AS
REHABILITATION AND CONSTRUCTION OF
DRAINAGE SYSTEMS, DE-SILTING OF RIVERS, DE-
CLOGGING OF CANALS;
3.3.4 OTHER ENVIRONMENTAL MANAGEMENT
PROJECTS THAT PROMOTE AIR AND WATER
QUALITY, AS WELL AS PRODUCTIVITY OF THE
COASTAL OR FRESHWATER HABITAT,
AGRICULTURAL LAND AND FOREST LAND.
 USE OF 20% DEVELOPMENT FUND
• 4.0 EXPENDITURE ITEMS NOT COVERED

THE FOLLOWING EXPENSE ITEMS THAT ARE NOT RELATED TO

AND/OR NOT CONNECTED WITH THE IMPLEMENTATION OF
DEVELOPMENT PROJECTS, PROGRAMS AND ACTIVITIES SHALL
NOT BE PAID OUT OF THE 20% DEVELOPMENT FUND:

4.1 ADMINISTRATIVE EXPENSES SUCH AS CASH GIFTS,

BONUSES, FOOD ALLOWANCE, MEDICAL ASSISTANCE,
UNIFORMS, SUPPLIES, MEETINGS, COMMUNICATION, WATER AND
LIGHT, PETROLEUM PRODUCTS AND THE LIKE;

4.2 SALARIES, WAGES OR OVERTIME PAY;

4.3 TRAVELLING EXPENSES, WHETHER DOMESTIC OR

FOREIGN;
CONTINUATION
4.4 REGISTRATION OR PARTICIPATION FEES IN TRAINING, SEMINARS,
CONFERENCES OR CONVENTIONS;

4.5 CONSTRUCTION, REPAIR OR REFINISHING OF ADMINISTRATIVE

OFFICES;

4.6 PURCHASE OF ADMINISTRATIVE OFFICE' FURNITURE, FIXTURES,

EQUIPMENT OR APPLIANCES; AND

4.7 PURCHASE, MAINTENANCE OR REPAIR OF MOTOR VEHICLES OR

MOTOR CYCLES.
Use of the 5% Disaster Risk Reduction and Management Fund(DRRMF)
Not less than 5% of the estimated revenue from regular sources
shall be set aside as the LDRRMF to support disaster risk
management activities.

The amount appropriated for LDRRMF, 30% shall be allocated as Quick

Response Fund (QRF) or stand-by fund for relief and recovery programs
in order that situation and living conditions of people in communities or
areas stricken by disasters, calamities, epidemics, or complex emergencies,
may be normalized as quickly as possible.
70% shall be allocated for pre-disaster activities pursuant to JMC No.
2013-1, series, 2013.
Use of the LDRRM Fund shall be governed by the provisions of RA No.
9184 (procurement).
CONTINUATION

USE OF THE LDRRM FUND SHALL BE GOVERNED BY THE

PROVISIONS OF RA NO. 9184 (PROCUREMENT).
UNEXPENDED LDRRMF SHALL ACCRUE TO A SPECIAL TRUST
FUND SOLELY FOR THE PURPOSE OF SUPPORTING DISASTER
RISK REDUCTION AND MANAGEMENT ACTIVITIES OF THE
COUNCIL WITHIN THE NEXT 5 YEARS. ANY SUCH AMOUNT STILL
NOT FULLY UTILIZED AFTER 5 YEARS SHALL REVERT BACK TO
THE GENERAL FUND AND WILL BE AVAILABLE FOR OTHER
SOCIAL SERVICES TO BE IDENTIFIED BY THE LOCAL
SANGGUNIAN.
3. PREPARE BUDGET MESSAGE
3.1 CONTENTS OF THE BUDGET MESSAGE:

POLICY THRUSTS FOR THE BUDGET

YEAR
ESTIMATED INCOME FOR THE BUDGET
YEAR
HOW INCOME IS ALLOCATED
EXPECTED RESULTS TO BE
ACCOMPLISHED
 EFFECTIVITY OF BARANGAY BUDGETS

R.A 7160. SEC. 332. EFFECTIVITY OF BARANGAY BUDGETS. – THE

ORDINANCE ENACTING THE ANNUAL BUDGET SHALL TAKE EFFECT
AT THE BEGINNING OF THE ENSUING CALENDAR YEAR. AN
ORDINANCE ENACTING A SUPPLEMENTAL BUDGET, HOWEVER,
SHALL TAKE EFFECT UPON ITS APPROVAL OR ON THE DATE FIXED
THEREIN.

THE RESPONSIBILITY FOR THE EXECUTION OF THE ANNUAL AND

SUPPLEMENTAL BUDGETS AND THE ACCOUNTABILITY THEREFOR
SHALL BE VESTED PRIMARILY IN THE PUNONG BARANGAY
CONCERNED.
 IS THERE A PENALTY FOR A PB WHO FAILS TO PREPARE AND
SUBMIT THE ANNUAL BARANGAY BUDGET ON TIME?

ANSWER:
YES, A PUNONG BARANGAY WHO FAILS TO SUBMIT THE
BUDGET ON OR BEFORE OCT. 16 OF THE CURRENT YEAR SHALL
BE SUBJECT TO SUCH CRIMINAL AND ADMINISTRATIVE
PENALTIES AS MAY BE PROVIDED BY THE LOCAL GOV’T. CODE
AND OTHER APPLICABLE LAWS.
 BARANGAY BUDGET
PREPARATION FORMS
 INSTRUCTIONS: (LBP FORM NO. 1)
COLUMN 1 – INDICATE THE RECEIPTS BY MAJOR SOURCE. THE BEGINNING BALANCE SHALL BE NET OF
AMOUNTS EARMARKED FOR SPECIFIC PURPOSES (E.G., CONTINUING APPROPRIATIONS, 20%
DEVELOPMENT FUND). THE BREAKDOWN OF THE MOOE, I.E., SUPPLIES AND MATERIALS EXPENSES, UTILITY
EXPENSES, COMMUNICATION EXPENSES, PROFESSIONAL SERVICES, GENERAL SERVICES, REPAIRS AND
MAINTENANCE, TAXES, INSURANCE PREMIUMS AND OTHER FEES, AND OTHER MOOE, SHALL BE PROVIDED
IN A SEPARATE LIST. EXAMPLE:
Account Title Account Code Account Title Account Code
Utility Expenses Professional Services
Water Expenses 5-02-04-010 Auditing Services 5-02-07-010
Electricity Expenses 5-02-04-020 Consultancy Services 5-02-07-020
Communications Expenses General Services
Postage and Courier Services 5-02-05-010 Janitorial Services 5-02-08-020
Telephone Expenses 5-02-05-020 Security Services 5-02-08-030
Repairs and Maintenance Supplies and Materials Expenses
Land Improvement 5-02-09-010 Office Supplies Expenses 5-02-03-010
Machinery and Equipment 5-02-09-040 Drugs and Medicines Expenses 5-02-03-040
 INSTRUCTIONS: (LBP FORM NO. 1)
COLUMN 2 – INDICATE THE ACCOUNT CODE FOR EACH ITEMIZED RECEIPT USING THE MANUAL
ON FINANCIAL MANAGEMENT FOR BARANGAYS, AS PRESCRIBED UNDER COMMISSION ON
AUDIT CIRCULAR NO. 2015-011 DATED DECEMBER 1, 2015
COLUMN 3 – CLASSIFY THE INCOME INTO REGULAR (R) OR NON-REGULAR (NR).
COLUMN 4 – INDICATE THE PAST YEAR’S ACTUAL RECEIPTS AND EXPENDITURES. THE PAST YEAR’S
ACTUAL RECEIPTS AND EXPENDITURES SHALL BE CERTIFIED BY THE BARANGAY TREASURER.
COLUMN 5 AND 6 – INDICATE CURRENT YEAR’S ESTIMATED RECEIPTS AND EXPENDITURES, AS
FOLLOWS:
• FIRST SEMESTER – ACTUAL RECEIPTS AND EXPENDITURES CERTIFIED BY THE BARANGAY TREASURER.
• SECOND SEMESTER – ESTIMATED RECEIPTS AND EXPENDITURES CERTIFIED BY THE BARANGAY
TREASURER.
COLUMN 7 – INDICATE THE TOTALS OF THE AMOUNTS UNDER COLUMN 5 AND 6.
COLUMN 8 – INDICATE THE PROPOSED AMOUNT OF RECEIPTS AND EXPENDITURES FOR THE
BUDGET YEAR.
 INSTRUCTIONS: (LBP FORM NO. 1)
NOTE:
BASED ON THE BUREAU OF LOCAL GOVERNMENT FINANCE MEMORANDUM
CIRCULAR NO. 16-2015 DATED JUNE 19, 2015 RE LOCAL PUBLIC FINANCIAL
MANAGEMENT (PFM) TOOLS FOR THE ELECTRONIC STATEMENT OF RECEIPTS AND
EXPENDITURES (WHICH INCLUDE THE GUIDEBOOK FOR THE NEW LOCAL
GOVERNMENT FINANCIAL PERFORMANCE MONITORING SYSTEM), REGULAR
REVENUES REFER TO TAXES, FEES AND RECEIPTS ACTUALLY REALIZED, INCLUDING
THE IRA AND OTHER SHARES PROVIDED FOR IN SECTIONS 284, 290 AND 291 OF
RA NO. 7160, BUT EXCLUSIVE OF NON-RECURRING RECEIPTS SUCH AS NATIONAL
AIDS, GRANTS, FINANCIAL ASSISTANCE, LOAN PROCEEDS, SALES OF ASSETS,
MISCELLANEOUS INCOME/RECEIPTS AND OTHER SIMILAR RECEIPTS.
 INSTRUCTIONS: (LBP FORM NO. 2)
COLUMN 1 – THE BREAKDOWN OF THE MOOE, I.E. SUPPLIES AND MATERIALS EXPENSES, UTILITIES
EXPENSES, COMMUNICATION EXPENSES, PROFESSIONAL SERVICES, GENERAL SERVICES, REPAIRS AND
MAINTENANCE, TAXES, INSURANCE PREMIUMS AND OTHER FEES, AND OTHER MOOE, SHALL BE PROVIDED
IN A SEPARATE LIST.
COLUMN 2 – INDICATE THE PPA REFERENCE CODE REFLECTED IN THE AIP CORRESPONDING TO EACH ITEM
OF APPROPRIATION.
COLUMN 3 – INDICATE THE ACCOUNT CODE FOR EACH OF THE ITEMIZED EXPENSES USING THE MANUAL
ON FINANCIAL MANAGEMENT FOR BARANGAYS, AS PRESCRIBED UNDER COMMISSION ON AUDIT
CIRCULAR NO. 2015-011 DATED DECEMBER 1, 2015.
COLUMN 4 – INDICATE THE PROPOSED AMOUNT FOR THE BUDGET YEAR.
COLUMN 5 – INDICATE THE GOOD OR SERVICE THAT THE BARANGAY IS EXPECTED TO DELIVER THROUGH
THE IMPLEMENTATION OF THE ITEMS OF APPROPRIATION.
 INSTRUCTIONS: (LBP FORM NO. 2A)
COLUMN 1 – INDICATE THE PPA REFERENCE CODE REFLECTED IN THE AIP CORRESPONDING TO EACH ITEM
OF APPROPRIATION
COLUMN 2 – INDICATE THE CONCISE DESCRIPTION AND DETAILS OF EACH OF THE DEVELOPMENT
PROJECTS TO BE IMPLEMENTED
COLUMN 3 – INDICATE THE AMOUNT ALLOCATED FOR EACH DEVELOPMENT PROJECT
COLUMN 4 – INDICATE THE TIMELINES OF THE IMPLEMENTATION OF EACH DEVELOPMENT PROJECT
COLUMN 5 – INDICATE THE GOOD OR SERVICE THAT THE BARANGAY IS EXPECTED TO DELIVER THROUGH
THE IMPLEMENTATION OF EACH DEVELOPMENT PROJECT
 INSTRUCTIONS: (LBP FORM NO. 3)
COLUMN 1 – INDICATE THE ITEM NUMBER OF THE PLANTILLA POSITION.
COLUMNS 2 AND 3 – INDICATE THE POSITION TITLE AND THE NAME OF THE INCUMBENT OCCUPYING EACH POSITION. IF
THE POSITION IS UNFILLED, INDICATE THE WORD “VACANT” UNDER COLUMN 3. IF THE POSITION IS PROPOSED FOR
ABOLITION, PLACE THE POSITION TITLE INSIDE A BRACKET. IF THE POSITION IS PROPOSED FOR RECLASSIFICATION, PLACE THE
PREVIOUS POSITION TITLE IN A BRACKET AND INDICATE THE PROPOSED POSITION TITLE BELOW IT.
COLUMN 4 AND 5 – INDICATE THE CURRENT SALARY GRADE/STEP AND CORRESPONDING RATE PER ANNUM OF EACH
POSITION. INCLUDE AS A FOOTNOTE THE COMPENSATION LAW/CIRCULAR BEING IMPLEMENTED. FOR THE INITIAL
IMPLEMENTATION OF CHANGES, ATTACH A COPY OF THE POSITION ALLOCATION LIST.
COLUMN 6 AND 7 – INDICATE THE SALARY GRADE/STEP AND CORRESPONDING RATE PER ANNUM OF EACH POSITION
PROPOSED FOR THE BUDGET YEAR.
COLUMN 8 – INDICATE THE DIFFERENCE BETWEEN THE OLD AND THE NEW RATES OF COMPENSATION PER ANNUM FOR THE
BUDGET YEAR.
ADDITIONAL INSTRUCTIONS:
1. THIS FORM SHALL COVER BOTH ELECTIVE AND APPOINTIVE OFFICIALS OF THE BARANGAY WHOSE SALARIES ARE
CHARGEABLE AGAINST PERSONAL SERVICES APPROPRIATION.
2. ONLY FUNDED VACANT POSITIONS SHALL BE INCLUDED IN THE PLANTILLA. ALL UNFUNDED VACANT POSITIONS SHALL BE
REMOVED/DELETED FROM THE PLANTILLA.
 INSTRUCTIONS: (LBP FORM NO. 4)
THIS FORM IS INTENDED TO REFLECT THE FOLLOWING:
COLUMN 1 – FULL NAME OF CREDITORS WITH THEIR CORRESPONDING ADDRESSES.
COLUMN 2 – DATE WHEN THE OBLIGATION IS INCURRED.
COLUMN 3 – PERIOD (MONTHS/YEARS) WITHIN WHICH TO PAY THE LOAN.
COLUMN 4 – PRINCIPAL AMOUNT OF THE LOAN.
COLUMN 5 – PURPOSE OF THE LOAN INCURRED.
COLUMN 6, 7 AND 8 – TOTAL PAYMENTS PRIOR TO BUDGET YEAR, INCLUDING PAYMENTS WITHIN THE
CURRENT YEAR.
COLUMNS 9, 10 AND 11 – AMOUNTS DUE AND BUDGETED FOR THE BUDGET YEAR.
COLUMN 12 – BALANCE OF THE PRINCIPAL AFTER DEDUCTING PREVIOUS PAYMENTS AND AMOUNT DUE
FOR THE BUDGET YEAR.
 DOCUMENTS AND FORMS TO BE SUBMITTED TO THE
SANGGUNIANG BAYAN FOR REVIEW OF BUDGET:

• TRANSMITTAL LETTER
• APPROPRIATION ORDINANCE
• BUDGET MESSAGE
• ANNUAL INVESTMENT PROGRAM WITH SANGGUNIAN RESOLUTION
• DILG ENDORSED GAD PLAN
• BDRRMP REVIEWED BY APPROPRIATE REVIEW TEAM
• BARANGAY EXPENDITURE PROGRAM (BBPF NO. 1, 2, 2-A, 3, 4)
A. IDENTIFY SOURCES OF REVENUE THAT WILL FINANCE THE BUDGET

1. INTERNAL SOURCES
STEP 1. DETERMINE ACTUAL INCOME FROM TAXES
Past Year Current Year Budget Year
PARTICULARS 2017 2018 2019
1.0 Beginning Balance
2.0 Income
2.1 Share from Real Property Tax
a. Business Taxes (Stores & Retailers)
b. Share on Sand & Gravel Tax
c. Miscellaneous Taxes on Goods & Services
d. Other Taxes
Sub-Total Income from Taxes

o BEGINNING BALANCE IS THE UNUSED OR UNEXPENDED APPROPRIATION FOR THE PAST AND CURRENT
YEAR LESS AMOUNT NEEDED FOR UNCOMPLETED PROJECTS OR SERVICES PLUS UNAPPROPRIATED INCOME
OR SURPLUS AT THE END OF THE FISCAL YEAR.
 STEP 2. DETERMINE ACTUAL INCOME FROM OPERATING AND
MISCELLANEOUS REVENUE

Past Year Current Year Budget Year

PARTICULARS
2017 2018 2019
2.2 Operating and Miscellaneous Revenue

a. Permit and Licenses

Permit Fee
Other Permit &b Licenses
Other Specific Income

b. Clearance & Certification Fees

Other Specific Income

c. Business Income
Sub-Total Income from Operating And
Miscellaneous Revenue
STEP 3. ESTIMATE INCOME FROM INTERNAL SOURCES FOR THE
BUDGET YEAR.

Note: Internal Sources include actual income from taxes as determined in Step 1 And
Actual Income from Operating and Miscellaneous Revenue as shown in Step 2.

A.) USE THE AVERAGE GROWTH METHOD TO ESTIMATE BUDGET YEAR’S INCOME.
Current Year Income –
Average Income Past Year Income
= X 100
Growth (AIG) Total Income – Current Year
B.) Income

C.) TO ESTIMATE INCOME FOR THE BUDGET YEAR

BUDGET YEAR
ESTIMATED INCOME = CURRENT YEAR INCOME (CYI) (AIG+1)

(BYEI)
 D.) APPLICATION OF PROJECTION TECHNIQUE

EXAMPLE: INCOME
a. To Estimate Average Growth

Past Year 1 2015 3,000

Past Year 2 2016 3,500 5,000 - 3,000

= X 100
Average Income
Past Year 3 2017 4,200 Growth (AIG) 15,700 - 5,000

Current Year 2018 5,000

TOTAL 15,700 AIG = 2,000 X 100

10,700

AIG = 0.1869 X 100

AIG = 18.69%

b. To Estimate Budget Year Income

E.) ANOTHER PROJECTION TECHNIQUE USING THE AVERAGING METHOD
IS DETERMINE THE INCREASE PER YEAR EXPRESSED IN
PERCENTAGE GROWTH AND AVERAGED AT LEAST FOR 3 YEARS
EXAMPLE:
Annual
Year Income %age Growth
Increase
2015 3,000.00
2016 3,500.00 500 16.7%
2017 4,200.00 700 20.0%
2018 5,000.00 800 19.0%
Average Growth 18.57%

To determine or estimate income from internal sources:

Budget Year2019 = Average Growth (2018 Income)

= 18.57% (5,000) + 5,000
= 928.5 + 5,000
= 5,928
2. EXTERNAL SOURCES
STEP 1. DETERMINE INCOME FROM EXTERNAL SOURCES.

Particulars Past Year Current Year Budget Year

(2017) (2018) (2019)
1. Share from Internal
Revenue Collections (IRA)
2. Share from National
Wealth
3. Share from EVAT
4. Subsidy from other LGUs
5. Others
TOTAL
 STEP 2. PROJECT REVENUE FROM EXTERNAL SOURCES. THE
BASIC ASSUMPTION IN ESTIMATING INCOME FROM
EXTERNAL SOURCES IS THE CURRENT YEAR’S
EXTERNAL SOURCES OF REVENUE IS THE SAME AS OF THE
BUDGET YEAR’S INCOME.
3. ADD ESTIMATED INCOME FROM INTERNAL SOURCES WITH ESTIMATED INCOME FROM
EXTERNAL SOURCES TO DETERMINE AMOUNT AVAILABLE FOR APPROPRIATION.
EXAMPLE:
ESTIMATED INCOME
INTERNAL SOURCES PX,XXX
ADD: EXTERNAL SOURCE X,XXX
TOTAL ESTIMATED INCOME

AVAILABLE FOR APPROPRIATION PX,XXX

 B. DETERMINE ACTUAL AND ESTIMATED
EXPENDITURE LEVEL

STEP 1. DETERMINE ACTUAL EXPENDITURE FOR

BASIC SERVICES, DEVELOPMENT
PROJECTS, SK AND CALAMITY FUND
EXPENSES FOR THE PAST YEAR.
 Actual Expenditure for the Past Year
BASIC SERVICES
HEALTH PEACE ADMINIS 20% of 5% of
AND AND - IRA 10% of Regular
Account
Code
OBJECT OF EXPENDITURE NUTRITIO ORDER TRATIVE/ DEVELOP- General Income TOTAL
AGRI DAY CARE
N SERVICES LEGIS- MENT Fund SK CALAMITY
SERVICES SERVICES
SERVICES LATIVE PROJECTS FUND
SERVICE
S
1.0 Current Operating
Expenditures
1.1 Personal Services
809 a. Honoraria
814 b. Cash Gift
c. Salaries & Wages -
803 Leased/Contracted
d. Terminal Leave
822 Benefits
e. Other Personnel
830 Benefits
1.2 Maintenance & Other
Operating Expenses
831 a. Travelling Expenses
b. Telephone, Telegraph
837 & Internet
838 c. Postage & Deliveries
862 d. Public Infrastructure
e. Motor Vehicle
878 Maintenance
f. Office Supplies
849 Expenses
834 g. Water
835 Electricity
836 Cooking Gas
831 h. Expenses Local
950 i. Other Expenses
1.3 Total Current Operating
Expenses
(1.1 + 1.2)
2.0 Capital Outlays
202 2.1 Land Improvements
204 2.2 Buildings
215 2.3 IT Equipment
218 Motor Vehicles
222 Office Equipment
224 Furniture & Fixture
3.0 TOTAL OBLIGATIONS (1.3 + 2.0)
STEP 2. DETERMINE ACTUAL EXPENDITURE FOR BASIC
SERVICES DEVELOPMENT PROJECTS, SK
AND CALAMITY FUND EXPENSES
FOR THE CURRENT YEAR.
 Actual and Estimated Expenses for the Current Year
BASIC SERVICES
HEALTH PEACE ADMINIS- 5% of
AND AND TRATIVE/ 20% of IRA 10% of Regular
Account NUTRITION ORDER LEGIS- DEVELOP-
Code
OBJECT OF EXPENDITURE General Income TOTAL
AGRI DAY CARE SERVICES SERVICES LATIVE MENT
Fund SK CALAMITY
SERVICES SERVICES SERVICES PROJECTS
FUND

1.0 Current Operating

Expenditures

1.1 Personal Services

809 a. Honoraria
814 b. Cash Gift
c. Salaries & Wages -
803 Leased/Contracted
d. Terminal Leave
822 Benefits
e. Other Personnel
830 Benefits
1.2 Maintenance & Other
Operating Expenses
831 a. Travelling Expenses
b. Telephone, Telegraph
837 & Internet
838 c. Postage & Deliveries
862 d. Public Infrastructure
e. Motor Vehicle
878 Maintenance
f. Office Supplies
849 Expenses
834 g. Water *NOTE:
835 Electricity
836 Cooking Gas

First six (6) months (Jan-June) are actual

831 h. Expenses Local
950 i. Other Expenses

1.3 Total Current Operating

Expenses
(1.1 + 1.2)
expenses. Assume that for the next six (6)
202
2.0 Capital Outlays
2.1 Land Improvements
mos. (Jul-Dec) will be equivalent to the
204
215
2.2 Buildings
2.3 IT Equipment
balance in appropriation (Total
218 Motor Vehicles Appropriation for the Current Year less
222 Office Equipment
224 Furniture & Fixture Actual Year)
3.0 TOTAL OBLIGATIONS (1.3 + 2.0)
 STEP 3. ESTIMATE EXPENDITURE FOR BASIC SERVICES, DEVELOPMENT
PROJECTS, SK AND CALAMITY FUND FOR THE
BUDGET YEAR
3.1 ALLOCATE INCOME FOR MANDATORY EXPENDITURES
ESTIMATED INCOME FOR THE BUDGET YEAR……………….P _____
LESS: MANDATORY EXPENSES
A. 20% OF IRA FOR DEVELOPMENT PROJECTS…..P _____
B. 10% OF GENERAL FUND FOR SK………………….P _____
C. 5% OF REGULAR INCOME FOR CALAMITY……….P _____
D. OTHER STATUTORY EXPENSES…………………….P _____
TOTAL MANDATORY EXPENSES…………………………………..P
_____
 Allocation for Basic Services for the Budget Year

BASIC SERVICES

HEALTH AND PEACE AND ADMINIS-

NUTRITION ORDER SERVICES TRATIVE/LEGIS-
SERVICES LATIVE SERVICES
Account Code OBJECT OF EXPENDITURE TOTAL

AGRI SERVICES DAY CARE SERVICES OTHER SERVICES

1.0 Current Operating

Expenditures

1.1 Personal Services

809 a. Honoraria

814 b. Cash Gift

c. Salaries & Wages -

803 Leased/Contracted

d. Terminal Leave
822 Benefits

e. Other Personnel
830 Benefits

1.2 Maintenance & Other

Operating Expenses

831 a. Travelling Expenses

b. Telephone, Telegraph
837 & Internet

838 Postage & Deliveries

862 c. Public Infrastructure

d. Motor Vehicle
878 Maintenance

e. Office Supplies
849 Expenses

834 f. Water

835 Electricity

836 Cooking Gas

g. Training Expenses
831 (Local)

950 h. Other Expenses

1.3 Total Current Operating

Expenses
(1.1 + 1.2)

2.0 Capital Outlays

202 2.1 Land Improvements

204 2.2 Buildings

215 2.3 IT Equipment

218 Motor Vehicles

222 Office Equipment

224 Furniture & Fixture

4. BARANGAY TREASURER SUBMITS STATEMENTS
OF INCOME AND EXPENDITURES ON OR
BEFORE THE 15TH DAY OF SEPTEMBER TO THE
PUNONG- BARANGAY (SEE BARANGAY BUDGET
PREPARATION FORM NOS. 1, 2 AND 3 IN PART
3.)
 DEPARTMENT OF BUDGET AND MANAGEMENT
and Association of Local Budget Officers in Central
Visayas, Inc.

Budget Authorization
Oct. 20-Oct. 31
What does the Local Government Code of 1991 (R.A 7160)
say?
• Adoption and enactment of a Barangay Budget into a General
Appropriations Ordinance (GAO)

• Sec. 391. Powers, Duties, and Functions. (a) The sangguniang

barangay, as the legislative body of the barangay, shall:
(3) Enact annual and supplemental budgets in accordance
with the provisions of this Code.
• GAO authorizes the Punong Barangay and other Barangay
Officials –
1. To carry out delivery of basic services;
2. To implement priority development projects.

• GAO provides funds to support above undertakings.

142
Basic Services of Barangay
1) Agricultural support services which include planting materials distribution
system and operation of farm produce collection and buying station;
2) Health and social welfare services which include maintenance of barangay
health center and day-care center;
3) Services and facilities related to general hygiene and sanitation,
beautification, and solid waste collection;
4) Maintenance of katarungang pambarangay;
5) Maintenance of barangay roads and bridges and water supply systems;
6) Infrastructure facilities such as multi-purpose hall, multipurpose pavement,
plaza, sports center, and other similar facilities;
7) Information and reading center; and
8) Satellite or public market, where viable

143
How is the Barangay Budget Authorized?
Step 1.
Present the Executive Barangay Budget to the Sangguniang
Barangay.
• Deliver the State of the Barangay Address (SOBA);
• Follow Contents of Budget Message;
• Calendar and certify as urgent the proposed executive
budget.
Step 2.
Deliberate on the Executive Budget.
2.1 Discuss the allocation of income to be initiated by the
Committee on Appropriations.
2.1.1 Budgetary Requirements:
144
Mandatory Budgetary Requirements:

55% of Regular Income of the next preceding

year - Personnel Schedule limitation or PS CAP
20% of IRA - For Development Projects
10% of Barangay General Fund - For SK Fund
5% of Regular Income - For Disaster Risk
Reduction Management Fund (DRRMF)

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

2% of Real Property Tax Collection - For Discretionary Fund of

next preceding year expenses of Punong Barangay 145
How to compute Personnel Schedule (PS)
CAP or limitation

55% of Regular Income of the next preceding year

Example:
FY 2017 FY 2018 FY 2019
Past Year Current Year Budget Year

P 1,000,000 P 1,100,000 P 1,200,000

x . 55
P 550,000
146
How to compute 20% Development Fund

20% of Internal Revenue Allotment (IRA)

- for Development Projects

Example:
FY 2017 FY 2018 FY 2019
Past Year Current Year Budget Year

P 600,000 P 800,000 P 1,000,000

x . 20
P 200,000
147
How to compute 10% SK Fund
10% of Total Regular Income
(Republic Act No. 10632)
Sec. 4. Use of 10% Sangguniang Kabataan Fund –
“Until the new set of officials have been duly elected
and qualified, the sangguniang barangay shall use the
sangguniang kabataan fund solely for youth development
programs.”
Example:
FY 2017 FY 2018 FY 2019
Past Year Current Year Budget Year
P 600,000 P 800,000 P 1,000,000
x . 10 148

P 100,000
How to compute 5% Barangay Disaster Risk
Reduction Management Fund (BDRRMF)
5% of Total Regular Income - Republic Act No. 10121
-30% of 5% lump-sum allocation for Quick
Response Fund (QRF)
-70% of 5% allocation for disaster prevention and
mitigation, preparedness, response,
rehabilitation and recovery.
Example:
FY 2017 FY 2018 FY 2019
Past Year Current Year Budget Year
P 600,000 P 800,000 P 1,000,000
x . 05 149

P 50,000
How is the Barangay Budget Authorized?
2.2 Discuss the allocation of income to other
PPA’s
2.2.1 Priority Projects / Services
– Over & Above 20% of the IRA
– Basic Services
– Expected Results / Output
– Performance Indicators for each MFO’s
2.3 Sources of Income
2.3.1 IRA & National Wealth shares
2.3.2 Locally-generated income
– Income from Tax Revenue
– Income from Operating & Miscellaneous Revenue 150

– Income from Other Sources

How is the Barangay Budget Authorized?
Step 3.
Enact the General Appropriations Ordinance (GAO).
Effectivity
• The Appropriations Ordinance is the legislative instrument
authorizing the budget;
• Effective at the beginning of the budget year upon approval by
majority SB members & signed by the Punong Barangay (PB).

151
How is the Barangay Budget Authorized?
Period of Approval
• Sanggunianag Barangay (SB) should approve GAO before
beginning of a new year;
• If no enactment, SB shall continue to hold sessions without
additional remuneration until Ordinance is approved.
• If SB fails to pass budget, appropriations ordinance of past year
is deemed reenacted.
(It remains in force & effect until ordinance authorizing budget is
passed by SB.) In case of REENACTED BUDGET:
- Only essential operating expenses necessary to operate
governance in the barangay & to deliver basic services shall be
allowed such as honoraria of barangay officials, salaries / wages of
employees, statutory / contractual obligations, supplies & materials,
communication & traveling expenses. 152
How is the Barangay Budget Authorized?
Reduction / Increase of Appropriations by the Sangguniang
Barangay (SB).
• SB can reduce appropriations but cannot increase the same
except when mandatory / statutory obligations have not been
provided in the budget;
• Provided appropriations does not exceed total estimated
income.

Vote of the Punong Barangay (PB) on the Proposed Budget.

• Punong Barangay does not normally vote but he may do so only

to break a tie;

• Punong Barangay may vote against the General Appropriation

Ordinance (GAO) if important items in original proposal are not
153
adopted or unnecessary insertions or deletions exist.
 How is the Barangay Budget Authorized?
Step 4.
Approval of the General Appropriations Ordinance
(GAO) by the Punong Barangay (PB)

• The Ordinance enacted by the Sangguniang Barangay

(SB), upon approval by majority of its members, need
to be approved & signed by the PB. Passed by a
majority of all the members of the Sanggunian
(50% + 1 excluding the presiding officer except
to break a tie).
PB has no veto power because he is the presiding 154

chairman of the SB.

 PROCEDURES

• Validation of Appropriations
1. ascertain adequacy of provision for budgetary
requirements, statutory and contractual obligations
2. determine compliance to budgetary requirements
and limitations per Sections 324, 325, 331 of the Local Government
Code.
Recapitulation of Findings
summarize findings, indicate possible action that the
Sangguniang Panlungsod/Bayan may take
Prepare review action document
1. Ensure that conditions imposed are consistent with
findings. Cite legal basis to support disallowances
and reduction of appropriation items
2. stamp the ordinance and the budget with the stamp
review of the reviewing office
BUDGET AUTHORIZATION FORM

156
157
158
159
160
161
DEPARTMENT OF BUDGET AND MANAGEMENT
and the Association of Local Budget Officers in
Central Visayas, Inc.

Budget Review
Nov. 11-Dec. 15
 BUDGET REVIEW
• IT IS THE THIRD PHASE OF THE BUDGET PROCESS FOLLOWING THE BUDGET
AUTHORIZATION PHASE.

• IT INVOLVES THE REVIEW OF THE ENACTED APPROPRIATION ORDINANCE OF

THE LGU BY THE APPROPRIATE REVIEWING AUTHORITY.

• IT IS REQUIRED FOR THE MEASURE TO BECOME WHOLLY EXECUTORY.

R.A 7160. SEC. 333. REVIEW OF THE BARANGAY BUDGET

(A) WITHIN TEN (10) DAYS FROM ITS APPROVAL, COPIES OF THE
BARANGAY ORDINANCE AUTHORIZING THE ANNUAL APPROPRIATIONS SHALL
BE FURNISHED THE SANGGUNIANG PANLUNGSOD/ BAYAN AS THE CASE
MAYBE THROUGH THE CITY/ MUNICIPAL BUDGET OFFICER. THE SANGGUNIAN
CONCERNED SHALL HAVE THE POWER TO REVIEW SUCH ORDINANCE IN
ORDER TO ENSURE THAT THE PROVISIONS OF THIS TITLE ARE COMPLIED WITH.
REGLAMENTARY PERIOD OF REVIEW
REGLAMENTARY PERIOD OF REVIEW

R.A 7160. SEC. 333. REVIEW OF THE BARANGAY BUDGET

IF WITHIN SIXTY (60) DAYS AFTER THE RECEIPT OF THE

ORDINANCE, THE SANGGUNIAN CONCERNED TAKES NO ACTION
THEREON, THE SAME SHALL CONTINUE TO BE IN FULL FORCE
AND EFFECT.
 REGLAMENTARY PERIOD OF REVIEW

R.A 7160. SEC. 333. REVIEW OF THE BARANGAY BUDGET

IF WITHIN THE SAME PERIOD, SANGGUNIAN CONCERNED SHALL HAVE

ASCERTAINED THAT THE ORDINANCE CONTAINS APPROPRIATIONS IN
EXCESS OF THE ESTIMATES OF THE INCOME DULY CERTIFIED AS
COLLECTIBLE, OR THAT THE SAME HAS NOT COMPLIED WITH THE
BUDGETARY REQUIREMENTS SET FORTH IN THIS TITLE, THE SAID
ORDINANCE SHALL BE DECLARED INOPERATIVE IN ITS ENTIRETY OR IN
PART.
 ROLE OF THE LOCAL FINANCE COMMITTEE
R.A 7160. SEC. 316. LOCAL FINANCE COMMITTEE

(F) ASSIST THE SANGGUNIANG PANLALAWIGAN IN THE REVIEW

AND EVALUATION OF BUDGET OF COMPONENT CITIES AND
MUNICIPALITIES IN THE CASE OF PROVINCIAL FINANCE
COMMITTEE, THE BARANGAY BUDGETS IN THE CASE OF CITY
OR MUNICIPAL FINANCE COMMITTEE, AND RECOMMEND THE
APPROPRIATE ACTION THEREON;
PURPOSES OF BUDGET REVIEW
TO ENSURE THAT THE PROVISIONS OF TITLE FIVE-LOCAL FISCAL
ADMINISTRATION-OF THE LOCAL GOV’T. CODE ARE COMPLIED WITH:
 THAT THE ITEMS OF APPROPRIATIONS ARE NOT MORE THAN THOSE
PROVIDED BY EXISTING LAWS
 THAT BUDGETARY REQUIREMENTS AND LIMITATIONS ARE COMPLIED WITH
 THAT THE FUNDAMENTAL PRINCIPLES OF BUDGETING ARE OBSERVED
 EFFECTS OF REVIEW

The reviewing agency or body has the following courses of

action after evaluation of the appropriation ordinance:

• DECLARE THE APPROPRIATION ORDINANCE

OPERATIVE IN TOTO
• DECLARE THE APPROPRIATION ORDINANCE
INOPERATIVE IN ITS ENTIRETY
• DECLARE THE APPROPRIATION ORDINANCE
INOPERATIVE IN PART
 EFFECTS OF REVIEW
Declare the appropriation ordinance
operative in toto
• THE BUDGET IS FOUND TO HAVE COMPLIED WITH THE PROVISIONS OF
LAW, RULES AND REGULATIONS.

• THE BUDGET SHALL BE IN FULL FORCE AND ITS EFFECT IS AT THE

BEGINNING OF THE FISCAL YEAR IN THE CASE OF THE ANNUAL BUDGET,
OR UPON ITS APPROVAL OR ON THE DATE FIXED IN THE ORDINANCE IN
THE CASE OF THE SUPPLEMENTAL BUDGET.
 EFFECTS OF REVIEW
Declare the appropriation ordinance inoperative in its entirety
• THE TOTAL APPROPRIATIONS IS IN EXCESS OF THE ESTIMATES OF INCOME DULY CERTIFIED
AS COLLECTIBLE
• NO SUFFICIENT PROVISION FOR PAYMENT OF LOANS
• THE BUDGET FAILS TO COMPLY WITH ANY OF THE OTHER BUDGETARY REQUIREMENTS
AND WHERE TO RECTIFY THE SAME WOULD NECESSARILY LEAD TO EXPENDITURES
EXCEEDING INCOME OR TO CHANGES IN THE OTHER ITEMS OF EXPENDITURE RESULTING
TO REVISION OF THE BUDGET
 EFFECTS OF REVIEW
Declare the appropriation ordinance inoperative in its entirety

• MUST BE RETURNED TO THE PB FOR PROPER ADJUSTMENTS/REVISIONS.

• BT SHALL NOT MAKE ANY FURTHER DISBURSEMENTS FROM THE
INOPERATIVE BUDGET.
• BARANGAY SHALL OPERATE ON A REENACTED BUDGET

• THE BUDGET SHALL BE REVISED TO COMPLY WITH THE PROVISIONS OF

LAW AND RESUBMITTED TO THE REVIEWING OFFICER WITH THE
APPROPRIATE REQUIRED REVISIONS.
 EFFECTS OF REVIEW
Declare the appropriation ordinance inoperative in part
• THERE ARE ITEMS OF APPROPRIATIONS NOT COMPLIED WITH OR THAT
THESE ARE FOUND TO BE IN EXCESS OR DEFICIENT UNDER PROVISIONS
OF LAW AND MAY BE CORRECTED BY THE IMPOSITION OF CONDITIONS
IN THE REVIEW LETTER.
• THE BUDGET IS CONSIDERED OPERATIVE AS REVISED/
REDUCED/ADJUSTED IN ACCORDANCE WITH THE REVIEW ACTION.
WHERE COPY OF REVISION, REDUCTION, ADJUSTMENT IS REQUIRED TO
BE SUBMITTED TO THE SANGGUNIANG PANLUNGSOD/BAYAN, THE SAME
WILL HAVE TO BE COMPLIED.

• WHEN THE APPROPRIATION ORDINANCE IS DECLARED INOPERATIVE IN

PART, ONLY THE ITEMS OF APPROPRIATION THAT HAVE NOT BEEN
DECLARED INOPERATIVE OR REDUCED SHALL CONTINUE TO BE IN FULL
FORCE AND EFFECT.
APPEAL FOR RECONSIDERATION IN CASE OF CONFLICT OF REVIEW LETTER

• BARANGAY MAY MAKE AN APPEAL IN CASE OF CONFLICT OF REVIEW

OF ITS BUDGET TO:
• CITY/MUNICIPAL LEGAL OFFICER ASSIGNED TO REVIEW AND SUBMIT
RECOMMENDATION ON APPROVED ORDINANCES AND EXECUTIVE ORDERS
ISSUED.
• DBM REGIONAL OFFICE FOR TECHNICAL ASSISTANCE
 PRESUMPTION OF REGULARITY
FOR THE PURPOSE OF BUDGET REVIEW, AN APPROPRIATION
ORDINANCE IS REGULAR ON ITS FACE IF IT CARRIES THE FOLLOWING:

• ATTESTATION OF THE SECRETARY TO THE SANGGUNIAN

AND THE CHAIRMAN, COMMITTEE ON APPROPRIATION;

• APPROVAL OF THE LOCAL CHIEF EXECUTIVE BY AFFIXING

HIS SIGNATURE ON EACH AND EVERY PAGE THEREOF (SEC.
54); AND

• PASSED BY A MAJORITY OF ALL THE MEMBERS OF THE

SANGGUNIAN (50% + 1 EXCLUDING THE PRESIDING OFFICER
EXCEPT TO BREAK A TIE).

• SEAL OF THE BARANGAY

 PROCEDURES
• Checking completeness of documentation

1. complete documentation, with all the required signature

of proper signatories
2. covering appropriation ordinance bears the seal of the
barangay, signed by the Punong Barangay, attested by
the Barangay Secretary and the Chairman, Committee
on Appropriation.
Analysis of income and expenditures
1. ascertain whether aggregate amount appropriated is within the
estimates of income
2. ascertain accuracy of data, validate recurring or regular income
and nonrecurring income. These data serve as basis for computation
of certain budgetary requirements and limitations.
 PROCEDURES

• Validation of Appropriations
1. ascertain adequacy of provision for budgetary
requirements, statutory and contractual obligations
2. determine compliance to budgetary requirements
and limitations per Sections 324, 325, 331 of the Local Government
Code.
Recapitulation of Findings
summarize findings, indicate possible action that the Sangguniang
Panlungsod/Bayan may take
Prepare review action document
1. Ensure that conditions imposed are consistent with
findings. Cite legal basis to support disallowances
and reduction of appropriation items
2. stamp the ordinance and the budget with the stamp
review of the reviewing office
 Budget
Execution
 BRGY. BUDGET EXECUTION

•WHO IS PRIMARILY
RESPONSIBLE FOR THE
EXECUTION OF THE
BARANGAY BUDGET?
 LEGAL BASIS
R.A 7160. SEC. 332. EFFECTIVITY OF BARANGAY BUDGETS.

THE ORDINANCE ENACTING THE ANNUAL BUDGET SHALL TAKE

EFFECT AT THE BEGINNING OF THE ENSUING CALENDAR YEAR. AN
ORDINANCE ENACTING A SUPPLEMENTAL BUDGET, HOWEVER, SHALL TAKE
EFFECT UPON ITS APPROVAL OR AS DATE FIXED THEREIN.
THE RESPONSIBILITY FOR THE EXECUTION OF THE ANNUAL AND
SUPPLEMENTAL BUDGETS AND THE ACCOUNTABILITY THEREFOR SHALL BE
VESTED PRIMARILY IN THE PUNONG BARANGAY CONCERNED.
 The Punong Barangay (PB)

Is responsible for the execution of the Barangay

budget and shall ensure the following:

* That the revenues as estimated are realized

* That the approved development projects

and basic services are implemented and
delivered
179
 How is the Budget Executed?

Step 1 –
Prepare a Simplified Allotment Release Order
(SARO) for all basic services and development
projects.
The SARO is released comprehensively for the
entire year.

(Barangay Budget Execution Form No. 1-

Simplified Allotment Release Order) 180
 How is the Budget Executed?

Step 2 –
Prepare a Cash Program (CP) to support the
Simplified Allotment Release Order (SARO).
The Cash Program (CP) is a financial statement
showing the expected income and disbursement
on a monthly basis (January to December).

(Barangay Budget Execution Form No. 2-

Cash Program) 181
 How is the Budget Executed?

Step 3 –
Prepare the quarterly performance targets.
This is the major justification for the release and
disbursement of funds. The expected results or
output to be produced by the financial
transaction are shown in the form.

(Barangay Budget Execution Form No. 3-

Performance Targets FY ____ ) 182
 How is the Budget Executed?

Step 4 –
Prepare the Disbursement Voucher for all valid
obligations found in the General Appropriation
Ordinance or Supplemental Budget.
This forms are used in obligating and disbursing
of funds. Issue checks to cover payments.

183
 SIGNATORIES IN THE CHECKS, OBLIGATION
REQUEST and the DISBURSEMENT VOUCHER

• Checks issued by barangays are jointly signed by

the Barangay Treasurer and the Punong
Barangay.

• The Obligation Request are signed by:

1) The Barangay Chairman
2)The Chairman of the Committee on
Appropriations of the SB, to certify as
to the existence of the appropriation;
184
 SIGNATORIES IN THE CHECKS, OBLIGATION
REQUEST and the DISBURSEMENT VOUCHER

• The Disbursement Voucher is signed by:

1) Chairman of the Committee on
Appropriation of the SB, tocertify as to
the existence of the appropriation
2) Barangay Treasurer, to certify as to the
availability of funds
3) Punong Barangay, to certify as to validity,
propriety and legality and approval of
the voucher. 185
 How is the Budget Executed?
Step 5 – Procure goods and civil works projects.
– Prepare / Revised Project Procurement and
Management Plan (PPMP) for:
- Basic Services Delivery
- Development Project
– Prepare / Revised Annual Procurement Plan
(APP) for all PPMPs for:
- Basic Services Delivery
- Development Projects
– Implement APP through the Barangay Bids and 186

Awards Committee (BBAC) pursuant to RA 9184

Principles and Rules to be Observed in the Release
and Disbursement of Barangay Funds
1) No money shall be paid out of the barangay
treasury except in pursuance of an
appropriations ordinance or law.
2) Barangay funds and monies shall be spent solely
for public purposes.
3) Trust funds in the barangay treasury shall not
be paid out except in fulfillment of the
purpose for which that trust was created of
the funds received. 187
Principles and Rules to be Observed in the Release
and Disbursement of Barangay Funds

4) Fiscal responsibility shall be shared by all

barangay officials exercising authority over
the financial affairs, transactions and
operations of the barangay.
5) No Cash Advances shall be made to any
barangay official or employees unless the
same is in accordance with accounting and
auditing rules and regulations.

188
Principles and Rules to be Observed in the Release
and Disbursement of Barangay Funds

6) In case of revenue shortfall, the following courses

of action shall be taken: -Spend only what’s
necessary, Intensify revenue collection, Seek
financial assistance and resort to borrowing.

189
Principles and Rules to be Observed in the Release
and Disbursement of Barangay Funds
7) The PB may by ordinance or policy in the
general provisions be authorized by the SB to
augment any item in the approved annual
budget from savings in other items within the
same expense class. Use of savings through
augmentation of funds is allowed without
creating a Supplemental Budget.
8) Unexpended Balances and Appropriations for
Personal Services and Maintenance and
Other Operating Expenses shall revert to the 190

General Fund at the end of the year.

Principles and Rules to be Observed in the Release
and Disbursement of Barangay Funds
9) Unexpended Balances and Appropriations for
Capital Outlays shall form part of continuing
appropriations.

10) Unexpended Balances and Appropriations of

the 20% Development Fund from completed
or discontinued projects shall be reverted to
the un-appropriated surplus and shall
thereafter be re-appropriated for other 191

development projects.
Principles and Rules to be Observed in the Release
and Disbursement of Barangay Funds

11) Total disbursements shall not exceed actual

collections plus 50% of the uncollected estimated
revenue
Example:
Actual Collections for the month = P 5,000.oo
Estimated Revenue for the month = 10,000. oo
Uncollected estimated revenue = P5,000.oo
50% of 5,000.oo = 2,500.oo
-------------
Maximum Total Disbursements = P 7,500.oo
192
Principles and Rules to be Observed in the Release
and Disbursement of Barangay Funds

12) The 10% Sangguniang Kabataan (SK) Fund is

a statutory obligation considered as a Trust
Liability. To use this fund, a work program
or a plan reflecting the projects that they
intend to fund for the year shall be
developed. Any unexpended balances shall
be added to the 10% share of the SK for the
next year.

193
 Barangay Cash Advance

• It is a relatively bigger amount of money given

to regular or special disbursing officers
depending on the bond secured for specific
public purposes.

• Regular cash advance includes expenses for

salaries, wages, commutable allowances,
honoraria and other similar payments.
194
 Rules in the Grant, Use and Liquidation of
Cash Advances (CA)
• Only duly permanently appointed officials /
employees shall be granted CA.

• Only duly appointed or designated Disbursing

Officers (DO) may perform disbursing functions.

• Only one DO shall be assigned/designated for a

specific purpose.

• Transfers of accountability for CA shall not be 195

allowed.
 Rules in the Grant, Use and Liquidation of
Cash Advances (CA)
• The accountable officer shall maintain an
official cashbook to record transactions of each
cash advance made.

• Under no circumstances shall cash advances be

used for the encashment of checks or
liquidation of previous CA

• A cash advance for a particular year shall not

be used to pay for expenses in other years. 196
 Rules in the Grant, Use and Liquidation of
Cash Advances (CA)
• The CA shall be sufficient for the recurring
expenses for one month and shall not used for
payments of regular expenses (i.e. rents,
subscriptions, light water, etc.

• The CA may be returned or deposited with the

collection officer when no longer needed or has
not been used for 2 months.

• All CAs shall be fully liquidated at the end of 197

each year.
 Importance of a Sound Internal Control
• To ensure that resources are used consistent
with laws, rules and regulations and existing
policies,

• To safeguard resources from loss, wastage and

misuse,

• To provide reliable; accurate and timely

financial and non-financial information, and

• To ensure economical, efficient and effective 198

operation
Barangay Budget Execution Form No.1

SIMPLIFIED ALLOTMENT RELEASE ORDER

Barangay: ________________

BASIC SERVICES APPROPRIATIONS

AND TOTAL RESERVE THIS
DEVELOPMENT PS MOOE CO (5) = (6) RELEASE
PROJECTS 2+3+4 (7)= 5-6
(1) (2) (3) (4)
Administrative Services 350,000.00 25,579.58 0.00 375,579.58 175,000.00 200,579.58
Peace and order services 0.00 23,100.00 0.00 23,100.00 11,550.00 11,550.00
Janitorial services 0.00 3,600.00 0.00 3,600.00 1,800.00 1,800.00
General Services 0.00 6,000.00 0.00 6,000.00 3,000.00 3,000.00
Repair and Maintenance 0.00 0.00
of Barangay hall 0.00 50,000.00 0.00 50,000.00 50,000.00 0.00
Calamity Reserve 34,159.60 34,159.60 34,159.60 0.00
Maintenance of barangay 0.00 0.00
roads 21,538.40 0.00 21,538.40 10,769.20 10,769.20
Agricutlural Services 4,000.00 0.00 4,000.00 2,000.00 2,000.00
Day Care Services 18,000.00 0.00 18,000.00 9,000.00 9,000.00
Health & Nutrition services 28,800.00 0.00 28,800.00 14,400.00 14,400.00
10% SK fund projects 68,319.20 0.00 68,319.20 0.00 68,319.20
Discretionary expenses 95.22 0.00 95.22 95.22 0.00
Repair and Maintenance
of Health Center 50,000.00 0.00 50,000.00 25,000.00 25,000.00

TOTAL 350,000.00 333,192.00 0.00 683,192.00 336,774.02 346,417.98

Prepared By: Approved By:

_________________ ___________________
Barangay Treasurer Punong Barangay
Instructions:

(1) List down the basic services, development projects, programs and activities of the barangay to
be delivered and implemented during the budget year in Column 1.
(2) , (3), (4) and (5) Indicate the appropriated amount for personal services, maintenance and other
operating expenses and capital outlays and sum up or add columns 2, 3 and 4 to get the total
appropriation in Column 5.
(6) A reserve imposition authorized by the Sangunian Barangay should be included in Column 6
to serve as contingency measure.
(7) This column shows the amount comprehensively released fro the fiscal year.
Barangay Budget Execution Form No. 2

CASH PROGRAM
Barangay: _________________

Income from Taxes MONTH

and Operating and TOTAL
Miscellaneous Jan Feb March April May June July Aug Sep Oct Nov Dec
Income
A. Income from Taxes 53,391.00 52,891.00 51,891.00
B. Operating and
Miscellaneous Income 4,100.00 5,000.00 7,000.00
C. (A+B)
TOTAL INCOME 57,491.00 57,891.00 58,891.00
LESS:
D. Disbursementts
Basic Services 38,100.00 40,650.00 40,650.00
Development
Projects 0.00 5,000.00 10,000.00
10% SK 3,000.00 3,000.00 4,000.00
5% BDRRMF 0.00 0.00 0.00
Others 0.00 0.00 0.00
E. TOTAL
DISBURSEMENTS 41,100.00 48,650.00 54,650.00
F. (C-E)
ENDING
BALANCE 16,391.00 9,241.00 4,241.00
G. BEGINNING
BALANCE/SURPLUS/
DEFICIT (cumulative) 16,391.00 25,632.00 29,873.00
Prepared by: Certified Correct: Approved by:

__________________ _______________________ ________________________

Barangay Treasurer City/Municipal Accountant Punong Barangay
Instructions:

(1) Indicate the monthly income of the barangay coming from taxes and
operating and miscellaneous income from
January to
December.
(2) Ensure that the monthly projection of income will be
realized and collectible.
(3) Determine the monthly disbursement or obligations to be incurred and project
from January to December of the Fiscal Year.
(4) Deduct total expected disbursement for the
month from the income.
(5) Reflect the balance as ending balance, if positive it means income is greater than
disbursements, if it is negative balance
it indicates that disbursements are greater than income. The ending balance for
the first month becomes its beginning
balance and adds up or becomes
cumulative until the last month.
Barangay Budget Execution Form No. 3

PERFORMANCE TARGETS, FY ________

Barangay : _________________________

Basic Services/ QUARTERLY TARGETS

Development Projects (3) TOTAL
MFO PERFORMANCE (4)
INDICATORS Q1 Q2 Q3 Q4
(1) (2)
Agricultural Services Plant seedlings distributed 25 25 25 25 100
Farmer beneficiaries 10 10 15 15 50
Day Care Services Pre-School children trained 40 40
Parent beneficiaries 40 40
Health & Nutrition Patients provided 15 15
Services primary care 15 15 30
Children provided nutritional 0
care 15 15 30
Peace & order Conflicts decided/resolved 1 1 2 1 5
Services Persons apprehended 0 0 1 0 1
Adm. & legislative resolutions passed 3 3 3 3 12
Services ordinances passed 1 1 1 3
Development Projects Kilometers of brgy. roads 0
maintained 0 1.5 1.5 3
Brgy. Hall maintained 1 1
Health Center maintained 1 1
Other SK Projects Athletic sports conducted 2 2
Youth trained on skills 2 2
Janitorial Services Brgy. hall & Health center
cleaned 2 2 2 2 2
General Services books of accounts
maintained 1 1 1 1 1
Prepared by: Approved By:

________________________________ ________________________
Barangay Secretary Punong Barangay
Instructions:

(1) Indicate the major final output or goods and services to be delivered to stakeholders.
(2) In Column 2 list down the performance indicators (at least 2) per MFO and quantify them in
Column 3 by quarter.
(3) Add all targets for the four (4) quarters and indicate sum in the total column.
 Budget
Accountability
What is budget accountability

• Budget accountability - is the last stage of

the budget process whereby financial
records and reports are prepared and
validated periodically to assess whether
performance is in accordance with the
budget plans.
206
How is accountability
of the budget done?
How is the accountability of the budget done (1)

* Record all collections from taxes, fees,

charges and contributions due or accruing
to the barangay in the Income Books of
Account under the General Fund.

208
How is the accountability of the budget done (2)

* Issue an official receipt for all taxes, fees,

charges and contributions collected.

209
How is the accountability of the budget done (3)

* Deposit all collections in the depository

account maintained in the name of the
barangay within five (5) days after receipt.

210
How is the accountability of the budget done (4)

*Collect Real Property Taxes and such

other taxes as may be imposed by
province/city/ municipality that are due in
the barangay only after being deputized
for the purpose by concerned Provincial/
City/Municipal Treasurer.
211
How is the accountability of the budget done (5)

*Record all obligations and disbursements

in the Expenditure Books of Accounts
under the General Fund.

212
How is the accountability of the budget done(6)

*Segregate all expenditure levels by sector.

213
How is the accountability of the budget done (7)

*Post in a conspicuous place in the

Barangay the income earned for the
quarter and where it was spent.
(Identify Step 6 as the services/development
projects where the income was spent) 214
How is the accountability of the budget done (8)

*Post in a conspicuous place the three (3)

Barangay Budget Accountability Forms
Nos. 1 to 3.

215
How is the accountability of the budget done (9)

 Monitor and evaluate performance.

 Monitor actual results of service delivery and
implementation of development projects.
 Compare actual results with planned targets.
 Provide corrective actions for negative
deviations. 216
What
accountability
reports
must be prepared
by the
barangays?
- The Barangay Treasurer and Barangay Secretary
are required to prepare the following reports:
1. Report of Actual Income
(Barangay Budget Accountability Form No. 1)
2. Quarterly Report of Financial Operation
(Barangay Budget Accountability Form No. 2)
3. Quarterly Physical Report of Operation
(Barangay Budget Accountability Form No. 3) 218
Why do barangays have to keep records
and prepare reports on all budgetary
transactions?
Why do barangays have to keep records and prepare
reports on all budgetary transactions (1)

- Barangay records and reports of budgetary

transactions must be prepared and kept for the
following reasons:
1. To provide information on the status of
project implementation
2. To ensure that obligations are incurred
within the limits of the approved
appropriations; 220
Why do barangays have to keep records and prepare
reports on all budgetary transactions (2)

3. To record unpaid obligations, both current

and those certified to as accounts
payable at the end of the year;

4. To serve as basic input into the next

budget preparation.

221
Who is/are responsible in
reporting the budget performance
of the barangays?
Responsible persons:

1. Punong Barangay
2. Chairman of the Committee on
Appropriations of the Sangguniang Barangay
3. Barangay Treasurer
4. Barangay Secretary
5. Barangay Bookkeeper/Municipal/City
Accountant
223
What must barangay officials report to the
general public regarding the barangay and
its budgetary transactions?
• Barangay officials must report the following to
the general public:
1. Income actually realized for the quarter;
2. Expenditures actually spent for the
quarter; and
3. Accomplishments for the quarter. 224
How are financial operations of a barangay
monitored and why is monitoring important?

• The financial operations of a barangay shall be

monitored by the barangay officials concerned
by comparing the approved appropriations
against actual obligations or disbursement.
Monitoring of the barangay financial operation
is necessary to ensure that expenditures do not
exceed the amount approved in the
appropriation ordinance.
225
What is the implication of a situation
where collections exceed the
revenue targets?
• The extra income over and above the estimated
revenues per approved barangay budget can be
certified to as available for a supplemental
budget. This means that some other projects
may be implemented during the year once a
supplemental appropriation ordinance is
enacted.
227
What is the consequence of disbursing items
of appropriations which were disallowed in
the budget review?

• Any official/employee involved in the

disbursement of funds which have been
previously disallowed in the budget review may
be meted with appropriate penalty by
authorities concerned.

228